Hut 8, a Canadian cryptocurrency mining company, raised $8.3 million from selling of a 6% equity stake to investors. The initial goal was $800,000, iHodl Russia reports.
The investment funds will reportedly allow Hut 8 to remain competitive, while smaller mining companies with old equipment face difficulties due to the bitcoin halving, which happened on May 11, 2020.
Hut 8 CEO Jimmy Vaiopoulos says the company is proud to close the first prospectus offering by a cryptocurrency mining company in Canada "and further improve Hut 8’s lead as one of the largest public bitcoin miners."
It is reported the investments will be used to purchase new mining equipment. The company said it could increase computing power by more than a fifth to 1150 PH/s. As a result, the company plans to comprise 1% of the total hash rate for the blockchain of bitcoin.
Hut 8 also added they would abandon the Bitfury's equipment, which is one of the largest investors in Hut 8, in favor of the Chinese giant MicroBT.
iHodl earlier reported that cryptocurrency mining company Argo doubled its resources in mining cryptocurrency Zcash (ZEC).
Argo purchased 750 Bitmain Z11 mining units for $474,000 to add to the Company's existing 1,000 Bitmain Z11 mining units currently in production. The additional 750 units went into production immediately at the time of acquisition and are currently running at full capacity.
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